Borders Books & Music® to Open Store in Middletown, New York

Business Wire, July 27, 2005

ANN ARBOR, Mich. -- Borders Books & Music (NYSE:BGP) will open a 19,121 square-foot store in Middletown, New York this October. The store will be in the Crystal Run Mall, located at 10 North Galleria Drive.

The new store will be the 26th store in New York, including a store in Poughkeepsie. The new site was selected based on a variety of factors including consumer demographics, the strength of the co-tenants, traffic patterns, the availability of parking and the overall attractiveness of the site.

Like the more than 500 Borders stores worldwide, the Middletown store will offer a vast selection of up to 200,000 book, music and movie titles available in an inviting atmosphere with plenty of comfortable seating throughout the store. The new store will feature a Seattle's Best Coffee(R) cafe that will serve their full line of premium coffee and non-coffee beverages, including lattes, mochas and blended beverages, and a fresh food menu, featuring pastries and sandwiches. The store will also include a Paperchase shop with a wide selection of fashionable notebooks, journals, wrapping paper, greeting cards and other gifts and stationery items from U.K.-based Paperchase Products Limited.

Through an alliance with T-Mobile(R), the Borders store is a T-Mobile HotSpot(R), allowing customers using Wi-Fi enabled laptops or PDAs with a T-Mobile account the ability to comfortably surf the web, access email, connect to their corporate network, or download large files all while connected to the nation's largest, carrier-owned Wi-Fi network. .

In addition, Borders makes it easy to find the books, music and movies that customers need. Each store features multiple self-serve Title Sleuth(R) computer stations, offering customers the opportunity to see if a particular title is in stock and where it is located within the store. If the item is not in the store, Title Sleuth allows customers to search neighboring stores and also to access more than 15 million out-of-print and hard-to-find titles worldwide. Through an alliance with Amazon.com, online shoppers at Borders.com can use the "In-Store Express Pick Up" option. This service combines the ease of shopping online with the convenience of paying for and picking up an item at a Borders store the same day.

Borders Original Voices program, now in its tenth year, gives recognition to new and emerging authors and artists and helps Borders share its passion for books, music, and movies with customers, from one enthusiast to another. Over the course of a year, more than 200 new works are featured in Borders stores. For those unsure of what they're looking for, "Borders Recommends" titles and reviews are displayed throughout the store, and knowledgeable booksellers are happy to suggest titles well suited to each customer.

About Borders Group

Borders Group, Inc. (NYSE:BGP) is a leading global retailer of books, music and movies with annual revenues of $3.9 billion. Headquartered in Ann Arbor, Mich., the company employs approximately 32,000 people worldwide. Borders Group operates more than 460 Borders superstores and approximately 650 Waldenbooks stores throughout the U.S. In addition, the company operates 46 Borders superstores outside the U.S., as well as 35 Books etc. stores located throughout Great Britain. Borders Group has also acquired Paperchase Products Limited, a leading stationery retailer based in London, England with more than 70 locations in the U.K. Teamed with Amazon.com, online shopping is available through Borders.com (www.borders.com) and Waldenbooks.com (www.waldenbooks.com). More detailed information on the company is available at www.bordersgroupinc.com. Information regarding Borders store locations, in-store events and title reservation is available through www.bordersstores.com.